After reading the IKEA case, I find following problems, * Reluctance to change furniture: mind set of Americans Americans typically have the mind-set that furniture should last a lifetime, which is not in-line with IKEA’s value that does not include durability in its products. Thus to increase market share in America, IKEA must change the American’s attitude towards furniture as something fun and disposable, furniture is something that add value to lifestyle without incurring too much cost. * Value added in high-end furniture retailer

As in IKEA motto: low price, there is no delivery and credit services offered. Whereas a typical American furniture retailer (Wal-Mart excluded) offered free delivery service, on top of personal consultation, interior design, credit (easy payment scheme) and huge selection of products. IKEA has to compete not only in price, but also the value added services that these furniture retailers offered as a package together with the furniture purchased. * Consumer preferences

Another challenge that IKEA faces in America is different consumer preferences and needs. IKEA originated in the Scandinavia has to modify its products to suit America’s furniture market. Managing sustainable growth for the future

To achieve the 2013 goal, IKEA should apply market leader strategy by expanding total market size, defending and developing its market share. To expand total market size, IKEA should use both new market segment and market penetration strategies. First, it should segment the market to middle-upper class. This particular segment includes young, educated, high mobility home makers that reside in sub-urban America. They are typically open minded and technology savvy which suits IKEA’s brand image and offerings. Second, IKEA should find new users, uses and increase usage volume of its current customers. To do so, it should encourage and cultivate a new concept of furniture as representative of life style. As life style changes...

YOU MAY ALSO FIND THESE DOCUMENTS HELPFUL

...quality and durability, at prices so low that the majority of people can afford to buy them (IKEA 1994). The company targets the customer who is looking for value and is willing to do a little bit of work serving themselves, transporting the items home and assembling the furniture for a better price. The typical Ikea customer is young low to middle income family.
2. EXECUTIVE SUMMARY Swedish Company IKEA was the world ’ s largest furniture retailer...

...What does IKEA mean in the eyes of the customer (value proposition)?
(i) The basic pillar of the value proposition offered by IKEA products with respect to the customer’s needs is the offer of low price products which however retain a level of quality. (ii) Another value proposition that IKEA offers to the customers is a unique combination of form, function and affordability as well as variety. Creation of beautiful and durable furniture which is...

...codes of conduct' upon those who supply them with finished products or components for assembly. IKEA and the shower curtain manufacturer discussed previously are one example. After a manufacturer of some of their carpets was linked to child labor in the mid-1990s, IKEA developed "The IKEA Code of Conduct" for its suppliers, as do many retailers sensitive to public image and the value of their brand names. IKEA was an early and high...

...﻿OVERVIEW OF IKEA
I. HISTORY
Ingvar Kamprad: The founder of IKEA, Ingvar Kamprad, began his business career as a young boy selling matches purchased in bulk individually for a profit to his neighbors near Agunnaryd. As his business grew, he expanded to selling fish, seeds, Christmas decorations and eventually, pencils and ball-point pens which were a new phenomenon in 1935. He was very clever in utilizing his resources - he delivered his goods by bicycle, and...

...business can use a situation analysis and SWOT to provide a direction for Ikea. This examines how types of customers and buyer behaviour will impact marketing strategies. Evaluates as a key marketing strategy for Ikea as a case study. Analyses marketing strategies can be used to achieve marketing objectives and describes some ethical and legal things that a business must manage and respond to while marketing.
Business Overview
Ikea is a well-known...

...Report
To: Carol George
From: Fangyi Shao
Subject: IKEA case study
Date: 24. Apr. 2009
1. Introduction
IKEA is the world’s largest furniture manufacturer who offers a wide range of well-designed, functional home furnishing products at a low price that many people can afford it. IKEA’s mission statement describes the purpose and distinctive advantages of the company clearly. (See appendices Ⅰ) It can also motivate management by saying ‘create a better...

...summary of the IKEA case study, followed by the strategies used in targeting the global customer segment, followed by the importance of their brand image along with the marketing implications with it, followed by the advantages and disadvantages of adopting a standardized versus an adapted strategy in IKEA’s global strategy, followed by the effectiveness of communications and the similarity of the cultures of the world today. Lastly, a conclusion I will summarize the report....